When it comes to responding to the fallout of the gig economy, the European Union is leaving the United States in the dust.
Just a couple of weeks ago, for example, in an effort to bring more transparency and predictability to workers in the gig economy, the European Commission adopted labor reforms that will set minimum standards and will apply to all workers. The Commission contends that radical labor market changes have made it necessary to balance the flexibility offered by new, non-standard work opportunities with the economic security accompanied by more traditional forms of employment.
But the Commission stressed that its policies will go beyond simply ensuring basic rights for workers. By creating a universal set of standards for all workers, it argued, the proposal will help both employers and countries by reducing “the risk of competition based on undercutting social standards.” Such competition and deteriorating social standards, after all, have harmful consequences for employers “who are subject to unsustainable competitive pressure and for Member States, who forego tax revenue and social security contributions.”
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